Shell completes sale of North Sea assets to Chrysaor for $3.8bn

The sale, announced in January, includes stakes in Shell’s Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine oilfields, plus a 10% stake in Schiehallion.

Shell could also receive an additional $180m, dependent on the achievement of certain exploration milestones and oil prices.

Should the average price of oil fall in or below the range of $47.50 to $52.50 boe between 2018-2021, Shell would have to make a payment to Chrysaor of up to $25m a year.

Chrysaor CEO Phil Kirk said: “With the acquisition of this package of high-quality, low-cost production assets, Chrysaor becomes the leading independent in the UK North Sea.”

Kirk added: “Safe and efficient operation of the assets is our primary objective as we pursue our development plans. We are already working hard to mature drilling opportunities in the Chrysaor-operated assets, secure further third party business for the hub assets, and actively support viable development initiatives proposed by our partner-operated assets.”